In the world of traditional financial transactions, a lot of information is circulating about these currency transactions, or what is commonly referred to as forex trading. Forex trading is an activity in the financial world that exchanges the currency of a country to the currency of another country with the aim of profit (the simplest) obtained from the difference in buying and selling price (spread).
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In modern financial transactions, there are new entrants who have entered the market for a decade, namely cryptocurrencies. This started with the presence of Bitcoin (BTC) as a crypto currency. They are well traded and bitcoin trading has a tendency to get more and more popular in the future. There are many tools created for this type of trade, one of which can be checked at https://learnbonds.com/bitcoin-robot/bitcoin-system/ .
The crypto itself has grown in popularity since its massive surge reaching a value of $ 20,000 per dollar, but then fell very steeply afterwards. In recent years, Bitcoin has been used as an asset for conducting many trading activities and also investing like ownership of company shares.
If further clarified, these two transactions have become part of trading activities, so you need to know the basic differences between forex trading and cryptocurrency trading.
Now, we will try to describe these basic differences between them. The fundamental thing that distinguishes forex and crypto trading is the assets that are traded. As explained a little above, forex trading transacts the currency of one country to the currency of another country. A simple example, the Euro (EUR) with the United States dollar (USD). In terms of exchange rates, at the time of writing 1 USD was worth an exchange rate of 0,84 EUR. In a simple transaction, if a trader bought 100 USD using EUR at the current exchange rate, and converted it back to EUR at a price of 1,00 per USD, then that trader can make a profit (in EUR). As simple as that.
In global forex trading, it can be seen that there is a choice of trading pairs between the Euro and USD which is usually symbolized by the EUR / USD pair, of course, the exchange rates of these two currencies are the focus of traders in making profits on the currency market. In crypto trading itself, transactions will be in the form of crypto currency assets that will have various pairs, either between a crypto and other cryptos or a crypto and a country’s currency. For other cryptos, usually the pairs that are often used by traders and investors are Bitcoin (BTC) and Ethereum (ETH) which are symbolized by BTC / ETH.
Here, traders will transact the exchange rate of ETH against BTC to take advantage of price fluctuations, which, in general, are calculated almost the same as fluctuations in forex with adjusted movement values.
Meanwhile, in crypto with the country’s currency, exchange rate transactions between BTC and for example EUR have a scheme that is more or less the same as calculating forex transactions.
Because the assets of these two forex and cryptocurrency transactions are different, the economic and fundamental data that need to be considered will also be different. It is usually used to determine the source of transaction decisions, regardless of technical analysis (relying on price patterns on the chart of a pair) or not. Whereas for crypto, news about blockchain decisions has more to do with prices. Ordinary economic news such as a rate cut has no significant impact on the cryptocurrency market. News related to blockchain or crypto is precisely what will move prices in the market, for example, the President of China, Xi Jinping, said that China will start using blockchain technology.